Investing.com-- Gold prices steadied close to record highs in Asian trade on Wednesday, recouping some recent losses as traders maintained bets that the Federal Reserve will cut interest rates further.
The yellow metal had hit record highs in September, but has since remained rangebound in the low-to-mid $2,600 an ounce range as traders priced in a slower pace of rate cuts by the Fed. The dollar hit two-month highs on this notion, pressuring metal markets.
But markets maintained bets that U.S. rates will still come down gradually, presenting more upside for metals and other non-yielding assets. This kept gold close to recent peaks.
Spot gold rose 0.2% to $2,667.072 an ounce, while gold futures expiring in December rose 0.2% to $2,83.95 an ounce by 00:39 ET (04:39 GMT).
Gold rangebound below record highs
Spot gold was largely rangebound in the past three weeks, struggling to make new highs as markets priced in a higher terminal rate for the Fed.
Spot prices hit a record high of $2,685.96 an ounce in late September.
While fears of worsening geopolitical conditions in the Middle East spurred some safe haven demand for bullion, this was diminished by a stronger dollar, following signs of resilience in the U.S. economy.
Still, gold is sitting on stellar gains so far this year, having hit a series of record highs on bets that U.S. interest rates will eventually fall.
Traders were seen pricing in a 91.1% chance the Fed will cut rates by 25 basis points in November, CME Fedwatch showed, a smaller cut than the 50 bps cut seen in September. Traders were also seen pricing in a small chance that rates will remain unchanged.
Other precious metals rose on Wednesday, as the dollar retreated from recent two-month highs. Platinum futures rose 0.9% to $1,005.30 an ounce, while silver futures rose 0.2% to $31.812 an ounce.
Copper steadies as China uncertainty sparks deep losses
Among industrial metals, copper prices steadied after logging steep losses in recent sessions, amid doubts over China’s recent stimulus efforts.
Benchmark copper futures on the London Metal Exchange rose 0.6% to $9,586.50 a ton, while December copper futures rose 0.4% to $4.3603 a pound.
Copper prices sank in recent sessions as traders were mostly underwhelmed by recent stimulus measures from top importer China, especially as Beijing left out details on the size and timing of the planned measures.
Weak economic readings from China also weighed, with recent data showing disinflation persisted, while the country’s key exports declined.